Coca-Cola USA
Fix it ... or we are out of business
These were the last words of instruction I received during my briefing. Simply put - The corporation required a significant improvement in return on investment. |
Situation:
Opportunity: Principle: Actions: Results: |
The Return on investment for Coca-Cola Fountain had fallen below the cost of capital. Historic placement programs were increasing in cost while at the same time, average volume realized at retail outlets was declining. Despite the change in the foodservice makeup (increased convenience stores and lower volume outlets), equipment placement programs had not changed for nearly 50 years.
One option was to increase the price of our syrup product, but that had the potential to create a competitive disadvantage. Therefore, our efforts were soon focused on generating revenue from a new source and, in a manner that provided an advantage over competitors. Price Bundling After looking at the options, we decided to create a new revenue stream with a “bundled lease” which we branded as the Total Value Plan. As opposed to a traditional equipment lease, we offered a variety of business-building activities paid for through the lease program. In so doing, we positioned Coca-Cola Fountain as partners to our foodservice customers. The revenue realized for each placement doubled in the targeted market segment. And, my team created the biggest go-to-market change in the company’s history. In so doing, we restored profitability. In addition, we managed all phases of the execution. |